Dealer OutlookTrade Only Dealer Outlook Blog2015-03-03T15:07:18Zhttp://blog.tradeonlytoday.com/dealer_outlook/?feed=atomWordPressNorm Schultzhttp://blog.tradeonlytoday.com/dealer_outlook/?p=23112015-03-03T15:07:18Z2015-03-03T15:07:18ZFrom the Gulf of Mexico to the Great Lakes, issues including red snapper, Asian carp and dangerous algae blooms are getting major attention. And they very well should because they directly impact boating.

More red snapper: Recreational fishermen continue to battle for a proper share of the prized red snapper fishery by opposing a proposal for “sector separation” in the Gulf of Mexico.

NOAA Fisheries wants comments from the public regarding Amendment 40 of the Fishery Management Plan that calls for taking away a portion of the recreational angler’s share of the red snapper fishery and gives it to charter boat owners (sector separation). In essence, Amendment 40 will further diminish red snapper fishing in federal waters for America’s saltwater fishing families.

Dealers, as well as anglers, who have a vested interest in saltwater fishing, whether in the Gulf or elsewhere, need to be engaged in this red snapper issue now because sector separation could be playing at a theater near you soon.

To act today, go to www.keepamericafishing.org and use the simple “Take Action” buttons that let you send your objection to red snapper sector separation. It’s that easy. And, while you’re there, look over and respond to the other issues like ethanol and the Sportsmen’s Act of 2015.

Less Asian carp: This voracious-feeding invasive species is in the Illinois Waterway and threatens to enter the Great Lakes at Chicago. If it ever does, it’s believed it could end the multi-billion dollar fishery of native species.

That’s why last week most members of Michigan’s congressional delegation proposed legislation to create a new barrier to these carp and call for a long-term plan for keeping them out of the Great Lakes.

Sen. Debbie Stabenow and Rep. Candice Miller are sponsoring legislation in their respective chambers with most of the state’s 14 other members of Congress signing on, too.

Among other requirements, the bill would push federal officials to step up efforts to block the Asian carp at a key choke-point in Joliet, Ill. Rep. Miller said: “This destructive species is quickly migrating north, destroying nearly every ecosystem along the way.”

President Obama’s budget includes $28 million to finish a third electric barrier near Chicago. Two electric “fences” are already in place and credited with keeping the carp in check for now. However, environmental groups are unhappy that only $500,000 has been requested by Obama to study digging a new channel at the Brandon Road Lock and Dam in Joliet featuring “technologies and measures necessary” to control the carp’s spread.

No more algae blooms: The U.S. House passed and sent to the Senate a bill requiring the EPA to develop a plan to deal with algal bloom toxins in public drinking water systems, including Lake Erie. Both the House and Senate versions of the bill were authored by Ohio lawmakers in response to last summer’s algal bloom crisis that shut down water supplies in Toledo from Lake Erie for about three days.

Algae blooms in western Lake Erie have been appearing in mid-summer for the last few years. They’ve negatively impacted boating and fishing activities in the prime season. H.R. 212, the “Drinking Water Protection Act,” was sponsored by Rep. Bob Latta and Rep. Marcy Kaptur.

It requires the EPA to develop a plan for handling algae bloom toxins within 90 days after the measure becomes law. The EPA also would be required to develop national standards for monitoring and treating toxins from harmful algal blooms.

Ten of the Great Lakes region’s largest environmental groups have also called on governors and Canadian premiers “to commit to at least a 40 percent reduction in phosphorus, with an emphasis on reducing agricultural sources.” Farming fertilizer use is believed to be the number one cause of algae blooms.

The bill passed the House 375-37. Sens. Rob Portman and Sherrod Brown are sponsors of the equivalent Senate bill, which is expected to see favorable action, too.

]]>0Norm Schultzhttp://blog.tradeonlytoday.com/dealer_outlook/?p=23082015-03-03T12:46:19Z2015-02-26T13:43:49ZLast Thursday, I posted a blog about potential new boaters in the Carlos C. Gomez family and their apparent frustration in finding what they considered an affordable first boat. Several of your comments, thank you, raised the conversation in ways worth further exploration.

My encounter with Gomez took place at the Progressive Miami International Boat Show, an amazing show that, by its nature, I think really isn’t the real world. Gomez could likely find more “affordable” small boats in the Cleveland or Nashville or Houston shows. Nevertheless, it seemed to support the idea that we might be succeeding in “selling” the boating lifestyle to newcomers, but we aren’t doing a good job of building or, especially, showing product that first-timers will see as affordable.

Matt Gurnsey identified in his comment to the blog a dilemma that most dealers likely face when it comes to their boat show participation. He said: “One of the biggest problems for dealers is the cost of space to exhibit at boat shows. Do we show a $10,000 boat or show a $30,000 in the same space that makes us more money?”

It’s hard to deny it is problematic for a dealer, especially when considering these points Gurnsey also makes:

Commissioned salespeople naturally want to sell more profitable larger boats to current boaters rather than deal with first-time buyers that require more time — “more hand-holding and more education” says Gurnsey — and deliver less profits and commission.

He admits he’s heard the comments from show visitors about no small boats in the show and has used space for 12- to 16-footers that price from $5,000. And he has sold some. “But we wonder what sales we missed by not having the more expensive boats there.”

In addition, products nationally advertised at promotional pricing by manufacturers takes the margins even lower and makes it harder to assign limited exhibit space in shows.

So is there an answer? Well, there are some things worth pondering:

Can the cost of exhibit space be reduced? That’s difficult. The costs of major shows are dictated by the venue’s required rent/labor/security/cleaning and much more. Add in decorating, advertising, feature costs and general overhead and every show manager struggles to hold the space price down. I know, having managed more than 125 boat shows.

Should each show allot free space for an “affordability” display of low-priced boats provided by dealers? It’s being done now in some shows where space is available. However, in cases where the show is a space sellout and dealers can’t get all they want now, the show would have to set aside some floor space, thus reducing what’s available to exhibitors. Moreover, if the show budget is based on income from a floor space sellout, the cost of the free space will have to be covered by increasing the basic space price to all. Still, even with that, it is something those who produce shows, particularly marine trade associations, need to talk about.

Could manufacturers provide assistance to dealers for holding in-store weekend events that focus solely on entry-level boats? A variation on a theme like: “Want to Be A Boater? Twenty Boats You Can Own for $250 or less! Demo Rides, etc.” Manufacturers could provide supportive promotional materials, unique economic incentives and even some product where feasible.

Can trade groups develop separate new boater promotions? It’s worth serious exploration. For example, could a trade association create a single day or weekend event(s) that is aimed squarely at new boaters . . . say a “Discover Boating Boat Show & Sale. Every boat on display is priced at $25,000 or Less.” Or every boat can be purchased for a payment of $250 or less, etc.

Such a venue won’t be an expensive exhibit hall, but perhaps a popular mall’s outer parking lot or on adjacent land to a large public marina or in the parking lot of a sports stadium or a local fair grounds. It would be a low-cost self-liquidating promotion or, perhaps, even partially subsidized from a trade association’s general funds. Moreover, such events could be held at different times in different parts of the trade association’s member area, thus serving a membership that’s geographically spread out.

Back to Gomez and his family. He was really saying: “I’m having trouble balancing the desire to get a boat with the cost.” Clearly we weren’t able to show him enough choices at the show.

I get every dealer’s concern when it comes to shows, space and profit margins. So we need two things to happen: 1) We need to produce more reasonably prices boats in this industry to appeal to newcomers and 2) we need to bring them to the marketplace where the new boaters can see and touch them . . . and maybe that has to be done in new and innovative ways.

]]>2Norm Schultzhttp://blog.tradeonlytoday.com/dealer_outlook/?p=23042015-02-24T15:42:54Z2015-02-24T15:27:47ZThere might never be a better time to effect changes in public policy than this year with a friendly Congress and key issues impacting the marine industry on the table.

For more than 20 years, ABC has been the industry’s annual “blitz” on Capitol Hill. This year’s schedule boasts some excellent changes and additions that should attract record attendance from every industry sector.

An all-new Stakeholders Networking Reception will open ABC on Monday evening (May 11). “All-New” continues Tuesday with a first-ever series of Breakout Sessions, allowing attendees to select the ones that fit their areas of interest.

Some breakouts will feature dealer-specific subjects, others will boast panel discussions or an expert speaker/leader. In addition, every major issue of industry concern will have a session complete with briefing materials and talking point handouts.

Enter the new “Topical Team” Hill visits. Attendees can choose to join a team that will be covering a particular topic of interest – the ethanol debacle, fishing regulatory issues, Sport Fish & Boating Trust Fund, among others. They’ll visit lawmakers who are key to those issues.

Never lobbied in Washington before? No problem. There will be a general session on “Effective Lobbying Techniques.” However, I can tell you from having attended ABC for many years, there’s really no mystery to it. In fact, if you’re from a congressman’s district it virtually guarantees you a meeting with your representative or a key staff member. The same is true for your two senators. But ABC is making it even easier and more productive this year.

The truth is lobbyists can’t do it alone. The underlying success of ABC is harnessing the power of constituency to advocate on the Hill. Connecting with constituents is a primary desire of every lawmaker. So relating an issue in person can really determine whether a lawmaker will understand and get on board. You are the most effective advocate and ABC makes it easy.

As the 114th Congress gets into high gear, the marine industry has some big issues that need to be addressed. Here are some:

Ethanol: It’s prime time to get ethanol off our customers’ backs. Several bills are pending that would revised the nation’s broken Renewable Fuel Standard and end the threat that millions of marine, auto and small engines will be destroyed by higher grades of ethanol.

Saltwater fishing: The Magnuson-Steven Act that regulates all saltwater fishing is up for reauthorization and it’s past time that the nation’s recreational anglers receive equal importance in future fishery policies. Heretofore, commercial fishing has been the principal beneficiary of fishing regulations at the expense of recreational fishermen. Reauthorization give the boating and fishing industries the opportunity to get significant policy changes and balance the scales.

Boating trust fund: This is huge for boating. Officially known as the Sport Fish Restoration & Boating Trust Fund, it is up for reauthorization this spring. Funded by federal gas tax and excise taxes on some fishing equipment, the fund pours $600 million a year into programs ranging from boating access facilities to state fishery management, restoration and expansion. The huge dollar benefit is something the industry could never do on its own. We must make sure it’s reauthorized with full funding.

Coast Guard: Funding for the Coast Guard is up for reauthorization. Among the many benefits to boating, there is a critical need for updating boat building standards as well as establishing a multi-year funding bill instead of the current 12-month temporary system.

Biscayne National Park: Boating access in Florida’s Biscayne Bay has become a poster child for struggles everywhere against expanded restrictions like no-fishing zones and no-combustion-engine areas as a “management tool.” In general, access to waterways has slipped in recent years and proponents are vigorously pushing for much more. The industry must push back hard when it comes to denying boaters and anglers reasonable access no matter where it is.

Bottom line: For a dealer, attending ABC with others from your state is the best way to update your lawmakers on issues that impact your business. Best of all, the NMMA’s Washington staff will even arrange your meetings for you. How easy is that? All you have to do is register and attend. Go to www.nmma.org and click on “Government.”

]]>3Norm Schultzhttp://blog.tradeonlytoday.com/dealer_outlook/?p=22992015-02-19T14:44:45Z2015-02-19T14:44:45ZCarlos C. Gomez lives in Miami with his wife and four children, Mary, Kathrine, CJ and Jon. We met last weekend at the Discover Boating Center at the Progressive Miami International Boat Show after they decided to get into boating.

“When I saw the Discover Boating sign,” Gomez said, “I came over because I figured you are behind the website, right? I want to tell you I did all my research on your website and it really helped us decide we want a boat.”

Voila, I thought. There’s proof that DiscoverBoating.com is getting the job done. But that’s when Mr. Gomez added what I didn’t want to hear: “But we’ve been all over this show and the prices are ridiculous,” he said. “Where are the cheaper boats?”

Now, we did have a short list to give the Gomez family of “affordable” boats in the show — specific boat models that could be purchased for a payment of $250 per month or less (Glastron, Carolina Skiff, Stingray among others).

But the truth is there really wasn’t a lot to show them. That interaction, however, documented several points worth noting.

His comment reminded me that, as an industry these days, we might be succeeding in “selling” the boating lifestyle to some newcomers, but we aren’t doing a good job of having product that first-timers will see as affordable.

First, it’s widely acknowledged in our industry that to grow boating we must reach a greater percentage of minorities, especially the rapidly growing Hispanic population. The Gomez family is a great example — they have means, albeit within limits; they are relatively young with four young children, typical of Latino families; and among the highest priorities for Hispanics are family-centered activities. Isn’t that boating’s strong suit?

Second, if our industry goal is to at least get back to the number of boats we were producing before the recession — yes, we’re growing again with still a long way to go — we must have an answer for Gomez and his family because he was really saying “I’m having trouble balancing the benefits of getting a boat with the cost.”

Truth is, I’m actually repeating what Brunswick chairman Dustan E. McCoy has previously identified as a major hindrance to industry growth and it’s worth remembering. He said: “If we look at real market pricing, the cost of new boats is rising dramatically faster than the rate of inflation.” He has urged the industry to rethink how boats and various components are made.

The auto industry is a good example. New cars continue to include numerous features and refinements not found on older vehicles. But the manufacturers have managed a more consistent level of retail prices while still protecting operating margins.

“In boating, we’re beginning to price ourselves out of business,” McCoy warned. “It’s difficult for a lot of people in our industry to wrap their heads around that, because we’ve all become very good at adding features and letting the costs fall where they may. But we now need to become better at engineering and building boats so they provide better value.”

The industry’s suppliers must play a key role for this to take place. Manufacturers and, ultimately, dealers don’t want to tie up their money in big inventories anymore. It means everyone in the supply chain needs to be able to meet needs faster. Suppliers to the marine industry need to be as quick and flexible just as suppliers in the automotive industry have become. In the end, we need more quality entry-level boats.

Meeting Gomez made it clear we are succeeding when it comes to making the boating lifestyle look attractive through marketing vehicles like Discover Boating. But that doesn’t mean we’ve got the sale. To get new blood to actually buy into the lifestyle, we must find ways to build boats and engines that are affordable for young families. And, while I get it that builders like the larger better-margin boats — and their importance should not be understated — space in our shows needs to be allocated to those products that young families can view as a good cost-benefit proposition.

]]>5Norm Schultzhttp://blog.tradeonlytoday.com/dealer_outlook/?p=22972015-02-17T14:54:28Z2015-02-17T14:54:28ZChatter about the obvious success of the 2015 Progressive Miami International Boat Show might have actually taken a backseat to talk about the 2016 show and its unprecedented move to a new site.

In its swan song at the Miami Beach Convention Center site, some 94,980 visitors poured into the show there, while an additional 19,279 show-goers attended Strictly Sail Miami at Bayside. Among notable show highlights was the significant increase in boat exhibit space this year. New models were unveiled by many major builders, perhaps the highest number of new designs since the Great Recession. It sent a loud message of confidence in the industry’s continued growth.

Confidence was also evident in the positive talk about the show moving to the Miami Marine Stadium Park & Basin on Virginia Key one year from now. Most agreed it will be an undertaking of huge proportion. But, with rare exceptions, exhibitors like the idea and voiced little doubt that the NMMA’s show team will pull it off.

“We think it’s great that the show will now be at the water’s edge,” said Dave Wallace of Scout Boats at the unveiling of their new 420 LXF Luxury Sportfisher. “It will give us the opportunity to have our larger boats in the water together with our smaller models inside. We’re already discussing our plans.”

Wallace hit on one of the top benefits of the show’s relocation — having inside and outside dry-land exhibit space adjacent to the in-water displays. Initial site plans for the basin, which is the size of the Washington Mall, includes all-new customized in-water docks for 700 boats of virtually unlimited size because of the deep water in the basin.

Overlooking the in-water docks will be acres of interconnected tents, albeit it’s hard to call these structures “tents.” They will, in fact, be larger versions of the air-conditioned clear-span event structures that are used by many boat shows including the one to supplement the space at the Convention Center this year.

“When we heard we’d been moved out of the Convention Center to a tent this year,” said Reed Austin, national sales manager for Edson International, “our thoughts were ‘Good grief, a tent!’ But now that we’re here we can honestly say it’s very well done and we’re very satisfied.”

The City of Miami will be investing $16 million to create a new “Flex Park” on the site. Miami mayor Tomas Regalado, along with city commissioners and administrators, started the project with a groundbreaking ceremony on Feb. 10.

The site will be transformed into a 15-acre recreational space, one of the largest city park developments within the last five years. The site development includes utility infrastructure development, storm water management and Flex Park field development.

Attendees at this year’s show couldn’t miss the promotion of the move. It included large signage with full color renderings of the new show placed all around the Convention Center as well as handouts. And while I was participating in the industry’s Discover Boating Affordability Exhibit, I found many visitors asking questions and liking what they were seeing in the promotions — a good sign for next year.

“With the move, we’ll be marking the show’s 75th anniversary next year,” said Cathy Rick-Joule, NMMA’s vice president and manager of the Miami show, told me Monday night at closing. And certainly we’ve had great success for many of those years here in the convention center.

“But we are truly excited about what we will introduce to the industry and the public next year in our new location,” she continued. “We’ll be able to do a lot of things differently and better because of the flexible site and, of course, the in-water space.”

One thing won’t change — the Strictly Sail Miami portion of the show will not be moving to Virginia Key. It will continue its successful run downtown at the famous Miamarina at Bayside.

When the American Boat and Yacht Council organized the inaugural Aquatic Invasive Species Summit, it opened a much-needed dialogue on the serious negative impact that invasive species will have on recreational boating and, therefore, the importance of the industry’s engagement.

Many have heard of invasive species, but few really understand their threat. While there are many different species, zebra and quagga mussels are the most recognized. They showed up in the Great Lakes in 1988 and within seven years had spread to connected waterways in 18 states and two Canadian provinces. Since then, they have spread overland to countless isolated inland waters.

Although there are many potential carriers that could account for the overland spread — waterfowl, for example — transient recreational boats are suspected of being the primary means of such dispersal. Mechanisms associated with boats — trailers, live wells, bilges, hollow lifting strakes, motor wells to name a few — have been identified as capable of transporting mussels.

So what do we know about zebras and quaggas? An adult female zebra mussel can produce 30,000 to 40,000 eggs in each reproductive cycle and she’s very prolific, reportedly turning out about 1 million each year. She begins to reproduce within just six to seven weeks of settling.

The offspring start as a free-swimming microscopic larvae or plankton, correctly called veligers. The veligers will drift in the water for several weeks, but eventually settle onto any hard surface they find. And, because the larvae is microscopic, it can be carried in water contained in anything.

Zebra mussels are filter feeders, sucking the plankton out of about one quart of water per day. They open their shells to dump decomposing waste that ends up on the lake floor. Zebras hook onto and clog power plant intakes, attach to docks, pilings, boat engine intakes and hulls that don’t have antifouling, for example. They even attach to aquatic plants. At the end of their four- to five-year life cycle, their very sharp shells can foul beaches.

It’s notable that the 10 trillion zebras and quaggas blanketing the bottom of the Great Lakes and filtering out the plankton have succeeded in actually doubling water clarity during the last decade. Clear water sounds good, doesn’t it? However, the lack of plankton floating in the water means much less food for native fish and clams. Zebras actually devastate native species by stripping the food web of plankton, which has a cascading effect throughout the ecosystem. Lack of food has already caused populations of alewives, salmon, whitefish, native clam species among others to plummet or disappear.

Another result is that the clearer water allows sunlight to penetrate to the lake bottom. This creates an ideal condition for algae to grow, which contributes to the spread of deadly algae blooms. The algae fouls beaches and causes botulism outbreaks that have already killed countless fish and more than 70,000 aquatic birds in the last 10 years, according to the U.S. Fish & Wildlife Service.

Zebra mussels also can tolerate a wide range of environmental conditions and adults can even survive out of water for about seven days. But it’s the microscopic veligers that can’t be seen in water that are the real culprits. Even more unfortunate, the vast majority of the organisms that are natural enemies in Europe are not present in North America.

Once zebra and quagga mussels become established, they are impossible to fully eradicate. So far, scientists haven’t found anything that will kill them all without also harming other wildlife. So a common prediction by scientists is that zebra mussels will continue spreading passively by ship and by pleasure craft to more waterways. And trailered boat traffic is the most likely vehicle for invasion into new areas. That’s why it’s believed that there are already zebras from Massachusetts to Southern California.

Water resource managers that attended the ABYC summit are hoping the marine industry can design ways to help stop the spread. It’s believed the spread is preventable if boaters thoroughly decontaminate, clean, dry and have no standing water in their boats and associated equipment before transporting them to new bodies of water. How to get that done without creating a scenario in which boating becomes such a hassle that people simply choose to get out of it, or never get in it, is the challenge for all concerned.

The ABYC’s summit, then, was a major step forward in bringing together a large partnership of resource managers, industry people and the boating public to explore new ways to deal with invasive species. And the process, while just beginning, is off to a good start.

]]>0Norm Schultzhttp://blog.tradeonlytoday.com/dealer_outlook/?p=22882015-02-10T13:42:02Z2015-02-10T13:42:02ZAquatic invasive species are often called a nuisance. So much for understatement. The truth is they are becoming a serious barrier to boating enjoyment and our industry’s prospects for growth and we must become engaged.

The American Boat and Yacht Council, recognizing the problem, took the industry lead by convening the first aquatic invasive species summit two weeks ago. It brought together more than 100 participants from federal and state water resource agencies and key segments of the boating industry for a first-ever wide-ranging discussion of aquatic invasive species.

“The participation was indicative of the concern about [aquatic invasive species],” ABYC president John Adey said. “The group was about half agency-half industry representatives. First, it was an opportunity for agencies and boating to learn what each other is seeing and to share expertise where it exists. Second, it provided a time in breakout sessions for groups to brainstorm ideas that each could take back and investigate going forward.”

The arrival of aquatic invasive species isn’t a new story. In 1988, zebra and quagga mussels from the Black and Caspian seas were discovered in Lake St. Clair, having hitched a ride into the Great Lakes through the St. Lawrence Seaway in ship ballast water. By 1989, they were found in Minnesota’s Duluth/Superior Harbor. Within seven years, the zebra mussel had spread to 18 states and two Canadian provinces.

Early on, the majority of the expansion appeared to occur within commercially navigable waters, thus commercial shipping seemed the primary source within connected bodies of water. Since then, however, the overland spread to isolated inland waters has rapidly increased well beyond waters connected commercially.

Current requirements that commercial ships change and treat ballast water before entering the St. Lawrence are believed to be preventing new arrivals. But, as for the invasive species already here, well, that horse is already out of the gate. Eradication isn’t in the current picture; ways to mitigate are.

For example, to combat the spread, there have been proposals in places like Texas to have boaters decontaminate their vessels before being permitted to launch into some lakes. Minnesota, recently held its own in-state summit and is allocating $10 million this year to programs for invasive-species prevention. In other areas, suggestions have been made to have boaters wait in line for an inspector to approve using the ramp. Even some lake homeowners associations could seek to close access to anyone from the outside.

Obviously, unless there is a macro perspective on invasive species seeking feasible mitigation actions, it’s possible boaters going from one area to another could face a myriad of rules or outright restriction. For boating, things can’t go that way.

From the marine industry’s perspective, we need to ask if there could be ways to use designs to help stop the spread and mitigate the impact of what’s already there. That’s how NMMA director of engineering standards Robert Newsome sees the possibilities. He led a large group of boat designers, trailer manufacturers, engine builders and systems designers to the summit.

“What’s come out of this initial meeting,” Newsome said, “is designers now have a better understanding of what’s happening out there, and they can begin exploring ideas and concepts that might have a positive impact.” As examples, he cites the possible industry-wide adoption of the sealed tubes and strake designs that Premiere Pontoons is sharing with other manufactures through ABYC and NMMA; or exploring questions like: can the hull drain plug be lower in a hull to totally eliminate any standing water?

At least two things will come directly from the first summit. ABYC is preparing a complete set of minutes from the summit, the first time many aspects of the problem will have been compiled. In addition, working with other partners, a central location will be created where all available AIS information can be accessed by resource managers, industry designers and engineers, and even the boating public. None currently exist.

Finally, Adey is encouraging state marine trade associations to join the effort by working with their local dealers and marinas to provide materials that call attention to good practices their customers can employ to help halt the spread of invasive species.

We’ll look at the real harm aquatic invasive species can do in Part 2 on Thursday.

]]>0Norm Schultzhttp://blog.tradeonlytoday.com/dealer_outlook/?p=22842015-02-05T01:39:35Z2015-02-05T01:39:35ZIt’s not too late to make a New Year’s resolution or two. In fact, early February is a great time to pause and take stock.

Resolution No. 1: Admittedly, most dealers are focused on their hectic winter boat show schedule. So it’s an easy guess that most haven’t yet set aside time to clean up very important things such as their website.

Nothing makes a dealership look more out-of-touch than to see old references. Make sure all dated 2014 material is eliminated. Remove holiday promotions or any old promotions for that matter. Replace them with more timely information and, hopefully, add new promotion(s).

While you’re at it, don’t overlook reviewing any personnel names and profiles that might have changed since your last update. And while the goal is to make everything current, in writing new website copy, try to add personality to it instead of dry “business-speak.”

Surprise and delight your website visitors however you can. For example, don’t just tell them your dealership is best; show them by relating stories of how you’ve helped customers realize their boating dream or how the service department solved a customer’s problems so the family could be back on the water fast. It’s a fact that stories always “sell” more than statements or claims.

And speaking of selling, there’s a real advantage in noting the boat shows still on your calendar this winter. Highlight what you’ll be featuring, especially any new models being shown for the first time as well as any special show deals that could resonate with customers.

Placing information about the upcoming show and your plans is essentially “pre-selling” your customers and prospects. Why? Surveys confirm show visitors cite seeing new products as the No. 1 reason they go to boat shows. Consequently, if you can offer discounted or even free show tickets picked up in advance in your showroom and have a pre-boat boat show exclusive preview of what’s new in your showroom, you have prospects and customers coming in your doors early.

Resolution No. 2: Resolve to have all dealership personnel master what Mount Dora Boating Center dealer Joe Lewis, chairman of the Grow Boating Initiative, so ably advocated in a recent report on the success of the industry’s Discover Boating campaign. Can’t say it better than this:

“The common thread throughout is not to convince people boating is inexpensive, but that it’s worth it — how boating delivers a value in family recreation. This does not lessen the importance for each of us to do our part to control the cost of participation and keep it as reasonable as we can. But, we cannot forget what boating delivers — freedom, fun, excitement and an opportunity to connect. Boating delivers memories that last a lifetime. And that’s not a cliché . . . it’s a fact.”

Frankly, I think it would be encouraging to give each staffer a copy of Lewis’ statement.

]]>0Norm Schultzhttp://blog.tradeonlytoday.com/dealer_outlook/?p=22822015-02-10T13:23:47Z2015-02-03T14:13:28ZWhy in the world would anyone pay parking and admission to go to a boat show and be hustled by a flock of salespeople when virtually everything they could want to know about a new marine product or dealer is available free at their fingertips? Answer: the experience.

Sure, the Internet has made shopping for a lot of things easier and faster. These days, there likely isn’t a product, or even a dealer, that hasn’t already been “reviewed” by people on social media. If there’s unprecedented access to pictures, videos, data and details, why do show visitors still cite seeing new products as their first reason to come to a show? The only logical explanation is that it delivers what the Internet can’t and that’s the experience.

Our boat shows are still so relevant and popular – witness how well most are doing around the country. It’s the chance to experience the products by “feeling” them, viewing them live, and directing questions face-to-face to a person. In fact, according to National Marine Manufacturers Association research, a hefty 40 percent of buyers ultimately make their purchase from a salesperson they met at a boat show. Moreover, on average, buyers attend three boat shows before writing the deposit check and that usually doesn’t happen until three or more months after the last boat show.

Accordingly, for a dealer, measuring the success of a show simply by the number of deposits taken during the event is misleading. The value of the show is considerably higher when it’s more accurately measured by comparing actual sales over an extended period with actual leads recorded from a show. Many dealers indicate up to half their annual sales can be directly tracked back to boat shows.

So the greatest benefit of exhibiting for dealers is the leads the show will generate. After all, a dealer is not really buying space, he’s buying access to the show’s qualified audience of thousands that he couldn’t come in contact with any other way, including the Internet.

Lead acquisition and a system to capture them is critical to a dealer’s show success. So says Bob McCann, director of education for ARI, which teamed up with the Marine Retailers Association of the Americas to provide sound advice on e-business sales processes. Since most winter boat shows are still ahead of us, here are a couple of strong recommendations from McCann who recently covered boat shows as part of the “Digital Marketing Masters Series” produced for MRAA members:

“Lots of traffic in your display is nice,” McCann says, “but unless you’re collecting hard leads, how can you possibly measure your boat show success?” He urges all dealers to go into each show with a specific goal for the number of leads targeted for takeout.

It’s also important to note that not all leads are created equal. For example, if you’re offering a drawing for a free prize, you can’t just leave entry forms on a counter, log in the names later and think you’ve got something. Instead, position your salespeople out front to meet new customers. Most important, designate a person to enter customer contact information into a tablet or some database system on the scene. That will make it much easier to follow up with those prospects. And the follow-up should begin right away, McCann says.

Here’s a shocker for you – 91 percent of show attendees claim they never hear from a dealer after the show. I must say I find that number hard to believe. However, assuming it’s anything like that, every salesperson should be trained in the dealership’s lead system. In addition, when meeting a good prospect there is no reason to wait until after the show to reach out to them. Today’s digital capabilities make it easy to send even a simple thank-you email immediately from the show floor that night. If appropriate, it can even have a link to the boat(s) they’re interested in. Such quick contact can go a long way.

Don’t stop there, McCann urges. After the show ends, follow up again with an email that speaks directly to the prospect’s interests. Let them know you are there to answer any questions and provide guidance. It’s not hard to assume good follow-up is what drives the 40 percent to eventually buy.

For MRAA members, the complete “Digital Marketing Masters Series” is catalogued on the MRAA members site.

]]>1Norm Schultzhttp://blog.tradeonlytoday.com/dealer_outlook/?p=22782015-01-29T11:32:47Z2015-01-29T11:32:47ZStarting off this New Year, it’s notable that consumer confidence keeps rolling and even the tax man reminds boating of favorable treatments.

First, if you haven’t been watching, this month has been a winner for our boat shows, likely helped by the continuing climb in consumer confidence. The Conference Board reported this week that the monthly Consumer Confidence Index jumped to 102.9 in January from a reading of 93.1 in December. It’s the strongest level since August 2007.

“Currently, consumer confidence is almost 30 percent higher this January compared to January of last year,” said Chris Christopher, director of consumer economics for forecaster IHS Global Insight. “The increased levels of consumer confidence are currently in sync with increased levels of consumer spending.

According to a report by Kevin G. Hall at McClatchy newspapers’ Washington bureau, economists at RDQ Economics have told investors: “In a strong signal that the expansion is feeling more normal, consumer confidence surged in January to the strongest level since August 2007. Importantly, the net jobs reading firmed by almost five points to the strongest level since February 2008. Six-month expectations for jobs and income also firmed.”

The rising confidence also indicates an expectation that hiring will be good this year. That, coupled with increasing wealth levels and lower gas prices putting hundreds of dollars back into consumer wallets, is all good news for boating.

Second, it’s time to remind dealership sales teams to make note of the favorable tax treatments for buyers as selling points during sales presentations.

Despite some calls in Congress to eliminate some advantageous benefits for boaters, Congress has continued them. The so-called “tax extenders” passed by Congress as the last session ended continue more than 50 tax programs ranging from possible boat-purchase interest deductions to accelerated business equipment write-offs.

More specifically, the very important Boat Loan Deduction Program remains. You’ll recall that some congressmen attempted to single out boaters by eliminating this deduction for boat owners while keeping it in place for second-home and recreational-vehicle owners.

Boating groups (NMMA, MRAA, BoatUS and others) rallied for a more equitable all-or-nothing approach when applying the deduction and won the day. Thus the benefit in which individuals with a secured boat loan can deduct mortgage interest paid on the loan from federal income taxes remains today, provided the boat qualifies as a second home with a galley, an installed head and sleeping berth.

Boat buyers can also enjoy the benefits of the Tax Increase Prevention Act of 2014 which continues a federal tax deduction for state sales taxes. Boat buyers can choose either the state sales tax deduction or state income tax deduction on their federal tax returns.

For dealers, the Bonus Depreciation advantage also remains, giving businesses an additional amount of deductible depreciation.

The bottom line is that, as the tax man comes around this spring, boating still enjoys some favorable treatments.